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(Ignore Income Taxes in This Problem

Question 6

Multiple Choice

(Ignore income taxes in this problem.) Hamilton Company invested in a two-year project having an internal rate of return of 12%. The project is expected to produce cash flow from operations of £60,000 in the first year and £70,000 in the second year. The cost of the project is closest to


A) £103,600.
B) £109,400.
C) £116,100.
D) £122,500.

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